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"The young women we surveyed show greater awareness and loftier financial goals overall, but parents clearly have more work to do in order to teach their kids positive financial habits early"

SAN FRANCISCO--(BUSINESS WIRE)--In a survey of young adults aged 16-25, Schwab found that young women
are more driven to reach financial independence than young males (67 vs.
58 percent). They are more likely to take on extra work to make ends
meet (28 vs. 23 percent) and see more value than men in creating a plan
to achieve their financial goals (76 vs. 64 percent). Yet, despite all
these good ‘first’ measures, they are investing and saving less than
young men – falling early into the financial gender gap.

“The young women we surveyed show greater awareness and loftier
financial goals overall, but parents clearly have more work to do in
order to teach their kids positive financial habits early,” said Carrie
Schwab-Pomerantz, President, Charles Schwab Foundation, and Senior Vice
President, Charles Schwab & Co., Inc. “It’s important to expose them to
the right money management skills early on.”

Young women aspire to be financially independent and are taking the
right first steps

Overall, women surveyed show greater awareness of day-to-day finances,
budgeting and spending. More young women than men understand the value
of making a financial plan, and higher percentages of women say they
want to pay their own bills, remain debt-free and live independently.
For example:

More young women (76 vs. 64 percent of men) say putting together a
financial plan is very important to reaching their financial goals;

Almost half of these young women (49 vs. 39 percent of men) cite
paying off student loans as a goal; and

Young women are also more willing to take action to make ends meet when
compared with young men:

Almost three quarters of women surveyed (73 vs. 56 percent of men) say
they have chosen to hold off on buying something they wanted in order
to save money;

More than a third of women surveyed (36 vs. 27 percent of men) say
they have skipped vacation or travel to save money.

But while young women are setting strong financial goals, some of
their actions are derailing their hard work toward long-term financial
independence

While the women surveyed report spending 36 percent less than men, they
have far less savings than men ($1,267 vs. $2,000) – a nearly 60 percent
difference.

In addition, twice as many young men as women say they would invest
spare cash, and almost twice as many young men as women report having
investment accounts (though most young adults do not invest at all).
Finally, women surveyed were slightly more likely to carry a balance on
a credit card, miss a bill payment and ask their parents for money to
cover necessities.

“Despite their good intentions, young women start to fall behind their
male counterparts in savings and investing early on in life,” added
Schwab-Pomerantz. “They start off showing a strong financial planning
mindset, but there is still room for further education when it comes to
managing their day-to-day finances.”

Parents are in a unique position to help raise financially
independent children as young adults say their parents are their
most-trusted resource for financial guidance

According to Schwab-Pomerantz, “There’s room for improvement in
educating both young men and women. It’s never too early to start
talking to kids about good financial behaviors.”

Here is some of the advice parents should start giving at a young age,
says Schwab-Pomerantz:

Parents should be conveying the same messages to boys and girls about
money, but you may need to tailor those conversations based on the
individual and gender.

Our study shows that while boys are spending more than girls, they
also are saving more. Have open and honest conversations with your
daughter(s) about the wage and savings gap.

Teach kids about the importance of investing – especially girls, who
as we see in this study, aren’t investing as much. Part of being
financially prepared is learning to make the most of your money, and
that means investing early and consistently.

Encourage your children to take full advantage of a company retirement
plan early and contribute at least up to the company match, more if
possible. While retirement should be a top priority for everyone, it’s
especially important for women, who tend to live longer than men.

Schwab provides a range of resources and learning programs to help
parents, guardians and young people make smart financial decisions and
achieve long-term financial success, including Schwab
MoneyWise®, a comprehensive and unbiased source of
financial education, guidance and interactive tools.

The online survey was conducted by Logica Research (formerly known as
Koski Research) from June 12 to June 20, 2018, among 2,000 Americans
aged 16 to 25. Quotas were set so that the sample is as demographically
representative as possible. The margin of error for the total survey
sample is three percentage points.

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of challenging
the status quo in our industry, innovating in ways that benefit
investors and the advisors and employers who serve them, and championing
our clients’ goals with passion and integrity. More information is
available at www.aboutschwab.com.
Follow us on Twitter, Facebook, YouTube and LinkedIn.

Disclosures

The Charles Schwab Foundation is a nonprofit, private foundation,
classified by the IRS as a charity under section 501(c),(3) of the
Internal Revenue Code. The Foundation is neither a part of Charles
Schwab & Co., Inc. (member SIPC) nor its parent company The Charles
Schwab Corporation.

Through its operating subsidiaries, The Charles Schwab Corporation
(NYSE: SCHW) provides a full range of securities brokerage, banking,
money management and financial advisory services to individual investors
and independent investment advisors. Its broker-dealer subsidiary,
Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. Logica Research is not affiliated with
the Charles Schwab Corporation or its affiliates. More information is
available at www.schwab.com and www.aboutschwab.com.